Yugant baghel

Roll no. 03
AFBM
BHARTI
ZAIN
INTRODUCTION TO BHARTI
Airtel is India’s biggest telecom company.
39,412 cr. Rs revenues per annum.
Bharti reach the 100 million subscriber mark first.
The first India's home-grown telcos to go global.
Currently working in 5 countries.
Last month Bharti bought 70% stakes in Bangladesh's
Warid telecom.
INTRODUCTION TO ZAIN
Kuwait- based telecom company.
Market leader in 12 country out of 15.
2923 mn. $ revenues per annum.
Currently working in 24 nations.
Zain’s overall revenues rose 14% in last quarter.
 STATISTICAL
COMPARISON
Bharti Zain

Total revenues 6.32 billion $ 6.17 billion $

Net income 1.67 million $ - 37million $

Customer base 125.30 million 71.80 million

Global presence 5 countries 24 countries

Arpu.** 3.14 $ 3.00 $

 THE DEAL
Airtel has bid for zain telecom for 10.7 billion
$.
Pure cash deal.
No stack or share deal or exchange.
Reasons for that deal
Competition in India. (13 operator each of 22 circles)
Cut call rates from Rs 16.80 pm to .50 pm.
Huge decrease in Av. Revenue per user. From 500 Rs to
145 Rs today. In last five years.
Telecom density in India is almost 47.89 %
Expected 80% in 2015.
ROADBLOCK AHEAD FOR
BHARTI
Zain’s caltel Nigeria unit is muddled in an
ownership dispute with Econet wireless
holdings.
Bharti would need clearance from telecom
regulators in each of 15 nations.
Bharti has to raise twice the debt it was to
raise from MTN. It also needs to convince the
lender about the viability of the zain deal
ADVANTAGE POINT
A) ZAIN from BHARTI
 Bharti may bring in tariff schemes for a low ARPU but
high volume market.
 Zain can also benefit from Bharti ‘s efficiency in
managing network operations.
B) BHARTI from ZAIN
 Bharti can understand African market better.
 It can learn a lot from zain expertise in data service such
as 3G and 3.5G
THANK YOU